BRITISH BUDGET

New Zealand Times, Volume XXXVIII, Issue 8725, 6 May 1914, Page 7

BRITISH BUDGET

CHANCELLOR’S PROPOSALS

CAPITAL INVESTED ABROAD WILL RE TAXED.

By Teiacraph—Press Association —Copyrlchi LONDON, May 4.

The Chancellor of the Exchequer, tho Right Hon. D. Lloyd George, introduced the Budget in the House of Commons.

Tiio estimated revenue is £200,655, 000, and tho expenditure £205,985, UOO.

Another four millions will ho required to assist the local authorities. It is proposed to raise nine millions by an additional tax on incomes of over £IOOO, ranging from 10J,d in the £ to 16d up to £3OOO per annum, while the super-tax limit will be lowered t© £3OOO. The readjustments will .yield five and a quarter millions, and the super-tax two and a-half millions. The death duties will he increased on estates of over £60,000, this yielding £600.000., . Capital invested abroad will be taxed, yielding a quarter of a million. The balance of the deficit will be taken from the Sinking Fund.

NO PURPLE PATCHES. VAST AND INTRICATE PROPOSALS. ALL PARTIES PUZZLED. (Received Mav 5, 10.50 p.m.) LONDON, May 5. Mr Lloyd George’s Budget speech lasted two and a-half hours. It contained practically no “purple patches.” Tho magnitude and intricacy of the proposals puzzled all parties. Mr Lloyd George said that_ the relief to the rates averaged nincponce in the £, and in some cases amounted to Is 6d. A pre-condition to a grant to local authorities would he efficient service in respect to poor law, police, roads, and education. Parliament for forty years had been imposing costly functions on local authorities without making provision to sustain them. Many Acts, particularly tho Housing Acts, were dead letters. In some districts, wherei the ratable value was low, municipal activity was at a standstill. Parliament practically acquiesced in the suspension of many laws because the local authorities were without means to carry them out. An essential part of the scheme was n national system of valuation tor local taxation, which would bo more equitable and impartial between the classes and- localities than the present system. Such valuation would separate the site from the improvement, but there 1 was no intention to transfer the whole burden to the site.

Mr Lloyd Georgo said that half a 'million would bo devoted to meals for needy school-children, physical training, and open-air schools. He said that hundreds of thousands attended schools daily in a condition of semistarvation, and the attempt to teach them was a mockery and a torture. Under voluntary act 360,000 children were relieved, hut another 260,000 required help in the future. The Exchequer would contribute half tile cost of the meals. A sum of £750,000 would be spent in developing tho national nursing service and local centres for diagnosis and research. After consulting tho best authorities, Mr Lloyd Georgo said he was of opinion that, although there would bo slackness in certain trades, others would bo busier than ever. On the whole, he expected that would be no serious set-back. Trade in 1914 was likely to be average. It was not safe to anticipate a continuation of the boom of 1913, but any depression will he shallow and will not last long. Dealing with taxation, Mr Lloyd Georgo pointed out that direct taxation was now sixty per cent., and indirect forty per cent. When, tho Government came into office each was fifty per cent. The death duties on estates of over £60,000 would bo increased until a maximum of twenty per cent, was reached upon an estate of £1,000,000, instead of the present 15 per cent., realising three millions for the full year. Increases in the income tax and super-tax would make the man with £IOO,OOO annually pay 2s 6d in the £, compared . with the present Is Bd. A statutory declaration of the total income would he enforced under stringent penalties, in order to prevent investments abroad where income accumulated as capital. The only reduction announced was the doubling of the paternity benefit. Mr Austen Chamberlain said he would not attempt to debate such complicated changes, though he deprecated a raid on tho sinking fund.

The House of Commons agreed to the income tax resolutions and then adjourned.

Some surprise was expressed in the Lobby that at a period of embittered party controversy, the House of Commons should .be asked to consider the complete re-casting of local government finance.

Some Unionists describe the Budget as a “dissolution Budget,” owing to the heavy calls made upon the rich. Liberals generally approve of the proposals.